Which One of the Following Conditions Is Not a Single

question 87

Multiple Choice

Which one of the following conditions is not a single requirement for verifying a financial lease according to Canadian accounting standards?

• A)there is reasonable assurance of asset title transfer at the end of the lease.
• B)the lessee will receive all or most of the asset's economic benefits.
• C)the lessor is guaranteed a profit on the lease equal to that of other investments.
• D)the lessor recovers the fair market value of the asset at the time of signing the lease, plus a return on that investment.

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Definitions:

Equity-Financed

A method of financing in which a company raises capital through the sale of shares, rather than borrowing through debt.

Net Present Value

An evaluation of the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Equity-Financed

A method of raising capital through the sale of shares in a company, thereby giving investors ownership interests.

Price Per Share

The market value of a single share of a company's stock, determined by the supply and demand for it in the stock market.